Telus offers to fully own digital unit for greater control of AI capabilities
A sign for Telus Communications in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File Photo
(Reuters) -Telus said on Thursday it intends to acquire the shares in its listed digital services subsidiary it does not currently own, as the Canadian telecom firm seeks greater control of the unit's artificial intelligence capabilities.
The company has offered $3.40 per share to acquire the shares it does not own in Telus Digital, valuing the unit at $946.8 million, according to Reuters' calculation. Telus currently holds about 57% of the digital unit's outstanding shares directly and through its other units.
This is a 15% premium to the last closing price of the subsidiary's U.S.-listed stock. U.S.-listed shares of the digital unit are down more than 24% this year, severely lagging the parent company whose U.S. listing is up nearly 19% this year.
The move underscores Telus' push for more control of the digital unit, which helps businesses adopt AI and develop data strategies amid a worldwide push to harness the technology.
"Our proposal to fully acquire Telus Digital reflects our belief that closer operational proximity... will enable enhanced AI capabilities and SaaS transformation across all lines of our business," Telus CEO Darren Entwistle said.
Telus said last month it is investing more than C$70 billion ($51.40 billion) in Canada over the next five years to expand its network infrastructure in the country, which would be focused around launching two new AI data centers.
Barclays is serving as Telus' financial advisor.
($1 = 1.3619 Canadian dollars)
(Reporting by Meghana Khare in Bengaluru; Editing by Leroy Leo)
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